Dear Copiers
$NVDA (NVIDIA Corporation) earnings report last week beat market expectations.
EPS was 89 cents vs estimated 84 cents
Revenue was $39.33 vs $38.05 expected
Revenue for the quarter was up 78% and full year revenue was up 114%, at a record $130.5 Billion.
Nvidia forecast revenue of 443 billion for first quarter which was higher than the analyst estimates of $41.78.
These are very good numbers from Nvidia as they are showing that revenue is continuing to grow. However, despite this good report shares fell around 9% on the announcement. This does seem surprising when they reported such a strong quarter, so let’s see why.
Firstly, Nvidia has just grown so much in the last 5 years (up 1700%) so perhaps it is not surprising some investors have decided to cash out some of their profit. I personally did the same in my private account last August and cleared all my mortgages (and gained my financial independence). However, even after this I continue to hold over 20% both here and off eToro as I still believe there is plenty more gains for patient shareholders in the future.
The main reasons I believe this is that $NVDA still are the leaders in the AI space, their products which I have talked about in my previous posts are brilliant. Nvidia have demonstrated over many years that I have invested that they know how to execute. Honestly there has hardly been a blip apart from the fall out of the crypto market back around 2018 when shares fell a stomach turning 40% after earnings report. I remember that I confidently loaded up (bought as much as I could) on that dip as I always understood that Nvidia was more than crypto - even back then it was clear to me it was about their chips / AI. Apart from that and of course getting caught up in general market down, I have always felt happy holding as it is an exceptionally well-run company under first class leadership.
Nvidia also has something that I see as a GREAT advantage and that is the First- Mover Advantage. This is something I see great value in as it means that they can establish a strong market position well before competitors arrive.
Finally, analysts are forecasting that AI market which is worth around $200 billion today to grow to $$1Trillion and beyond in the future. And with Nvidia’s strong products and dominance in the market it will in my opinion be seeing a good slice of this market.
Thanks Lena
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